A special PMLA court in Hyderabad has convicted five people, including three bankers, on money laundering charges in connection with a loan fraud of over Rs 2 crore in the State Bank of India (SBI). The Enforcement Directorate (ED) gave this information in a statement on Tuesday.

The ED said the convicts have been sentenced to seven years' rigorous imprisonment and fined Rs 50,000 each. The Court of Metropolitan Sessions Judge convicted T Jayashree and M Chinna (employees of Chakkilam Trade House Limited) and three bank officials S Narasimhan, A Sasibhushan Rao and S Aarogyam under sections of the Prevention of Money Laundering Act (PMLA).

The court has also directed the company to pay a fine of Rs one lakh. The case was registered by the ED after taking cognizance of a CBI FIR in the money laundering case. The ED had filed the charge sheet before the court in December 2013.

An amount of Rs 2,08,50,000 was sanctioned by SBI and was misused and made legal, the statement said. The agency said that the company and its promoters have already sold the properties mortgaged to banks for the loan.